IRVINE, Calif. (AP) — Heart valve maker Edwards Lifesciences Corp. said Friday it will sell its LifeStent line of stents to C.R. Bard Inc. for up to $140 million to focus on its core businesses.
''Although sales are growing, the LifeStent product line is generating operating losses,'' said Edwards Chairman and Chief Executive Michael A. Mussallem, in a statement. ''Achieving leadership in the peripheral vascular market would have required substantial additional investment.''
LifeStent accounts for about $30 million in 2007 sales, the company said. Stents are mesh wire tubes used to prop open formerly clogged arteries after they have been cleared of plaque.
Edwards will receive an initial cash payment of $75 million when the deal closes and another $65 million in cash depending on the achievement of certain milestones. Those milestones include regulatory approval of a LifeStent product and the transfer of LifeStent device manufacturing.
Edwards said it will provide transition services for up to 2.5 years and up to 150 employees could be effected by the end of that transition period.
The deal is expected to close in January.
Shares of Edwards Lifesciences closed at $49.92 Thursday.
